Indian
stock market investors are laughing all the way to the bank with the total
market value of domestic listed companies soaring to a record USD 1.5 trillion
on a day when the benchmark BSE Sensex ended at a new closing high of
25,396.46. Market-capitalisation (m-cap) of all the listed companies stood at
Rs 89,31,898 crore. At the closing rate 59.17 for USD-rupee pair, the market
value stands at USD 1.5 trillion. Stocks witnessed heavy buying with the Sensex
logging a new all-time intra-day high of 25,419.14 and settled for the day at a
new closing high of 25,396.46, up 376.95 points or 1.51 per cent. The rupee
appreciated 16 paise, logging its biggest daily rise in a fortnight, to end at
59.17 against the US dollar. Indian equities started a dream run in the run-up to
Lok Sabha election results on May 16. From 22,000 levels in early May, Sensex
crossed the 25,000 mark after the Narendra Modi-led government assumed charge,
with a historic mandate after three decades of coalition politics. The stable
government has raised hopes of a quick economic revival buoyed by continuing
reform initiatives cutting across sectors. India had first entered the
trillion-dollar club in June 2007, but moved out in September 2008, amid the
global slowdown. It again got back into the elite league in May 2009 and had
largely remained there since then, except for some brief periods including once
in 2012. In August 2013, it had, however, slipped out of the elite list.
"Markets rose sharply for the week, reaching new all–time highs. Announcement
of stimulus by ECB and continued optimism on economic reforms in India led to
big gains. "Expectations of resolution to the gas pricing issue helped
stocks like RIL and ONGC register gains. We see the monsoon progress and the
budget to be the two important triggers," said Dipen Shah, Head- Private
Client Group Research, Kotak Securities.
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